The Blues will feature in Europe’s premier club competition for the first time in four years after claiming a famous Challenge Cup final success over Gloucester in Bilbao in May.
And following some significant summer signings, hooker Dacey believes the Cardiff Arms Park outfit could be on the verge of something special.
“We can 100 per cent build on last season’s success,” said the 29-year-old.
“It’s a great place to be at the Blues and we haven’t had this level of confidence and belief for a number of years now. On our day, we can beat any side in Europe.
“We are back where we belong now. If you look at the Champions Cup and the calibre of the sides in it, for us to be in the mix with them is huge.
“There’s no reason why we can’t compete for the Guinness PRO14 and the Champions Cup this season. We will be aiming for the play-offs and then knock-out rugby is all about who turns up on the day.
“It’s for anyone to take and as a group of boys we are excited for the season ahead. As a squad we know that competing for silverware this year is on our agenda.
“Getting into the PRO14 play-offs and getting into the Champions Cup quarter finals would be massive for us.”
The Blues have been pooled alongside Saracens, Glasgow and Lyon in Europe this season, but their first priority will be the PRO14 which begins on August 31.
Eight-times capped Wales forward Dacey has had a tough time of late having suffered a series of injuries caused by a bulging disk in his back.
A prolonged spell on the sidelines last season resulted in the Merthyr Tydfil product seeing young guns Elliot Dee and Ryan Elias jump above him in the Wales pecking order.
Dacey wants to regain his place in Warren Gatland’s international squad this season and added: “My first aim is to nail down the number two jersey back at the Blues.
“I want to get back to a standard which I’m happy with personally. If I can get back to that, then I’ll hopefully be able to push my way back in.
“I’ve just got to concentrate on my own game and concentrate on getting my body ready for what I want it to do. If I can do that, I have no doubt I can get back in there.
“The World Cup is still a long way away. Come the spring and summer that’s when you start thinking about it.”